Lycos InSite AdBuyer is the latest effort by the Barcelona-based Internet group to shore up ad revenues by offering marketers a variety of means to promote their sites through Lycos search results.
In February, the company launched a paid inclusion service, in which companies can pay to have their Web sites included in relevant search results, and a hosted site search service.
The latest offering allows customers to buy and manage both paid inclusion and keyword advertising through an integrated "marketing dashboard".
It is the first time that Lycos has offered keyword marketing services.
With AdBuyer, advertisers can select keywords related to their company product or service, and then bid on them. Pricing is discriminate and charged on a cost-per-click basis. Advertisers can then track traffic rates and adjust their marketing campaigns through AdBuyer.
"The 'marketing dashboard' allows advertisers to get at the millions of Lycos users through a one-stop shop," said Tom Wilde, general manager of search services for Terra Lycos.
The advertising platform requires a minimum opening account balance of $100 (£65) and keyword bidding starts at five cents per click, per keyword, the company said. Advertisers set a budget for their account and Lycos debits it on a cost-per-click basis.
The keyword advertising platform is powered by FindWhat.com, which uses a proprietary technology where advertisements are purchased using an open bidding system.
Although Lycos' keyword bidding platform will not be in full swing until later this month, FindWhat executive vice-president Dave Rae said, "We've see a very broad range of customers participating. There are few marketing options where small companies are served as well as large companies."